"Tesla Inc. shareholders are being urged by proxy adviser Institutional Shareholder Services to vote against Chief Executive Officer Elon Musk's $1 trillion compensation plan, adding a potential obstacle as the board works to rally investor support. This marks the second year in a row that ISS urged shareholders to vote against a pay package for Musk. Musk oversees an overlapping empire of five companies: Tesla, SpaceX, xAI, Neuralink and the Boring Company."
""Although one of the main reasons for this award is to retain Musk and keep his time and attention on Tesla instead of his other business ventures, there are no explicit requirements to ensure that this will be the case," ISS wrote in the report, which was part of broader voting guidance it issued Friday. The proxy firm cited "unmitigated concerns" with the plan's magnitude and design."
"Tesla pushed back in a post on X that urged shareholders to vote in line with the company's recommendations. "ISS once again completely misses fundamental points of investing and governance," the automaker said. "It's easy for ISS to tell others how to vote when they have nothing on the line." In September, Tesla's board proposed the long-awaited and unprecedented compensation package, designed to incentivize Musk to remain engaged with Tesla over the next decade. To unlock the full payout and additional voting control, Musk will need to reach a number of ambitious goals, including growing the company's market value to at least $8.5 trillion and expanding its car, robotics and robotaxi businesses."
Proxy adviser Institutional Shareholder Services recommended that shareholders vote against Elon Musk's $1 trillion Tesla compensation package, citing concerns about magnitude and design. ISS noted the award aims to retain Musk and secure his attention, but identified no explicit requirements to prevent diversion to his other ventures. Tesla pushed back on X, criticizing ISS's guidance and noting ISS has no stake. The board tied the package to ambitious ten-year targets, including growing market value to at least $8.5 trillion and expanding car, robotics and robotaxi businesses. The plan could raise Musk's Tesla holdings to at least 25%.
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